#1FAO 000 FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO DOO 000 Ontario's Labour Market in 2022 The province records another year of strong employment growth 2023 000 000 Ontario's Labour Market in 2022 Briefing Deck 00 FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO#2Outline ■ Ontario's labour market recorded another strong year in 2022 Nearly all groups of workers saw job gains Wage growth for most workers did not keep up with inflation. Several labour market challenges persist FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO % 000 Financial Accountability Office of Ontario | fao-on.org 2#3MÌ M Ontario's labour market recorded another strong year in 2022 & % 000 $ FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO Financial Accountability Office of Ontario | fao-on.org 回目 3#4Change in Employment (Thousands) -350 -450 1977 Source: Statistics Canada and FAO. FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO -250 1980 -150 1983 450 350 250 150 50 -50 1986 1989 Record job gains in Ontario during the past two years Ontario gained 338,300 jobs (4.6 per cent) in 2022. When combined with the rise in 2021, this marks the strongest two-year period of job gains on record. The annual unemployment rate in the province dropped to 5.6 per cent in 2022, the same as the pre-pandemic rate observed in 2019. WIND 1992 1995 1998 2001 2004 Employment Change AMNT Unemployment Rate 12.0 367 338 10.0 8.0 6.0 5.6 4.0 2.0 0.0 2007 2010 2013 2016 2019 Financial Accountability Office of Ontario | fao-on.org 2022 Unemployment Rate (Per Cent) 000 % 四#5MÌ M Nearly all groups of workers saw job gains & % 000 FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO $ 回目 Financial Accountability Office of Ontario | fao-on.org 5#6Job gains were widespread in 2022 The strong increase in employment in 2022 was experienced across all major age groups, and for male and female workers. Weakest pace of job gains were experienced by workers 55 years and older. After declining for two consecutive years, the number of retired workers 55 years and older increased by 41.8 per cent in 2022. % Change in 2022 Employment (Per Cent) By Age Group 9.0 8.4 8.0 7.0 6.0 4.6 5.0 4.0 3.0 2.0 1.0 0.0 15 to 24 years 25 to 54 years Source: Statistics Canada and FAO. FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO 2.2 55 years and over Change in 2022 Employment (Per Cent) By Gender 6.0 4.8 5.0 4.3 4.0 3.0 2.0 1.0 0.0 Males Females Financial Accountability Office of Ontario | fao-on.org 6 000#7All major types of workers saw employment growth The majority of job gains in 2022 were concentrated in full-time, private sector, and permanent positions. Self-employment in Ontario increased modestly following two years of decline. and may reflect record job openings in paid employment as well as a shift in people's willingness to pursue self-employment. Type of Employment 7.0 Change in 2022 Employment (Per Cent) N WAGO 4.0 3.0 2.0 6.0 5.0 Job Permanency of Paid Employment* 4.7 5.3 4.2 1.0 0.0 Full-time Class of Workers 6.1 5.8 5.1 000 0.1 Part-time Permanent Temporary Private Public Self-employed |||| *Paid employment does not include self-employment Source: Statistics Canada and FAO. FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO Financial Accountability Office of Ontario | fao-on.org 7 %#8Majority of industries experienced job growth Nearly all major industry groups saw employment gains. Professional, scientific and technical services recorded the largest job gains for the second consecutive year. Professional, scientific and technical services Construction Finance, insurance, real estate, rental and leasing Wholesale and retail trade Health care and social assistance Public administration 51.0 49.3 41.1 34.5 34.4 27.6 Accommodation and food services 26.5 Information, culture and recreation Transportation and warehousing Educational services Manufacturing Business, building and other support services Agriculture Forestry, fishing, mining, quarrying, oil and gas Other services (except public administration) 18.1 12.7 12.2 11.9 Utilities 8.6 8.4 5.0 2.5 -5.6 Source: Statistics Canada and FAO. FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO -20 -10 0 10 20 30 40 50 60 Change in 2022 Employment (Thousands) 四 % 000 Financial Accountability Office of Ontario | fao-on.org 8#9All Census Metropolitan Areas experienced job growth ■ Belleville and St. Catharines-Niagara saw the fastest pace of job growth. Employment in Greater Sudbury, Thunder Bay and Brantford remained below the pre-pandemic 2019 level. Belleville St. Catharines-Niagara 14.8 11.5 Kingston 8.1 Barrie 7.6 Oshawa 7.3 London 4.8 Brantford 4.7 Toronto 4.7 Guelph 4.3 Peterborough 4.1 Greater Sudbury Windsor Ottawa-Gatineau, Ontario part Kitchener-Cambridge-Waterloo 4.0 3.8 3.4 3.3 Hamilton 2.2 Thunder Bay 1.3 0.0 5.0 10.0 15.0 20.0 Source: Statistics Canada and FAO. FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO Change in 2022 Employment (Per Cent) Financial Accountability Office of Ontario | fao-on.org % 000 6 9#10MÌ M Wage growth for most workers did not keep up with inflation % 000 $ FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO Financial Accountability Office of Ontario | fao-on.org 回目 10#11Wage growth did not keep up with inflation for the second consecutive year The average hourly wage of Ontarians increased 4.2 per cent to $32.94 in 2022, below the 6.8 per cent CPI inflation rate. This marked the second consecutive year when wage growth did not keep up with inflation. Annual Growth in Average Hourly Wage Rate Annual CPI Inflation (Per Cent) 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 4.2 6.8 FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO Source: Statistics Canada and FAO. 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Financial Accountability Office of Ontario | fao-on.org 11 2018 2019 2020 2021 2022 000 %#12MÌ M Several labour market challenges persist & % 000 FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO Financial Accountability Office of Ontario | fao-on.org $ 回目 12#13Proportion of Long-term job vacancies reached highest on record Long-term job vacancies, defined as positions that remained unfilled for 90 days. or more, represented 36.3 per cent of all job vacancies in the third quarter of 2022, the highest share on record. 40 35 30 25 20 Proportion of Job Vacancies Unfilled for 90 days or more (Per Cent) 15 10 5 0 II Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Source: Statistics Canada and FAO. FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Financial Accountability Office of Ontario | fao-on.org 36.3 % 13 000 四#14Record proportion of employees absent due to illness or disability With most pandemic-related restrictions more fully lifted, the share of Ontario employees who were absent from work either a full week or part of a week due to illness or disability reached 5.2 per cent in 2022, the highest on record. 6.0 0.0 Proportion of Employees Absent due to Illness or Disability (Per Cent) 1.0 NW 2.0 3.0 4.0 5.0 1977 1979 1981 Source: Statistics Canada and FAO. FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 Financial Accountability Office of Ontario | fao-on.org 14 2013 2015 2017 2019 2021 5.2 % 000#15Employment in some industries not recovered from pandemic Five out of 16 industries operated with fewer employees in 2022 compared to before the pandemic in 2019. Collectively, the share of these industries in total employment has dropped from 20.5 per cent to 17.9 per cent over the period. Accommodation and food services -13.3 Other services -12.9 Business, building and other support services Transportation and warehousing -7.8 -3.5 Source: Statistics Canada and FAO. FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO Agriculture -20.0 -16.0 -12.0 -3.5 -8.0 -4.0 0.0 Change in Employment, 2019 to 2022 (Per Cent) Financial Accountability Office of Ontario | fao-on.org % 000 15 15#16mm AA L Thank you! !MMM! ED ECH DF FAO FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO 2 Bloor Street West, Suite 900 Toronto, Ontario, M4W 3E2 416.644.0702 [email protected] fao-on.org in D